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Trade War and Devaluation: Challenges for China's Economic Resilience

05 Jan '25
8 min read
Trade War and Devaluation: Challenges for China's Economic Resilience
Trade War and Devaluation: Challenges for China's Economic Resilience

Insights

  • China is gearing up for Trump's presidency with trade diversification and possible currency devaluation. Facing US tariffs, China aims for more regional trade, domestic sales, and strategic investments.
  • Currency devaluation by the central bank could boost exports but risks inflation, challenging economic resilience.
  • The implications will become clear once the US policies are unfolded.
China is gearing up for Trump's presidency with trade diversification and possible currency devaluation. Facing US tariffs, China aims for more regional trade, domestic sales, and strategic investments. Currency devaluation by the central bank could boost exports but risks inflation, challenging economic resilience. The implications will become clear once the US policies are unfolded.

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